India, July 9 -- Chief Minister Rekha Gupta issued strict orders on Wednesday to combat the misuse of power of attorney for evading stamp duty. She directed that every power of attorney document executed in favour of non-blood relations must be evaluated and decided upon within 30 days by the collectors of stamps in Delhi. The move will curb revenue loss in the registration of immovable properties and also rein in land mafia and irregular practices at sub-registrar offices, the Delhi Chief Minister's Office said in a statement. The General Power of Attorney (GPA) documents executed in favour of individuals other than blood relations, specifically parents, spouses, sons, daughters, brothers, or sisters, will no longer be directly registered by the sub-registrar. Also Read - Balcony of luxury society flat collapses in Gurugram; residents demand 'structural audit' "All such cases will be mandatorily referred to the concerned collector of stamps for adjudication to determine the appropriate stamp duty payable," the chief minister said. The collector of stamps will be required to pass a reasoned written order on every such reference within thirty days. The order will determine whether the document is merely a GPA or attracts full stamp duty as applicable to a conveyance deed (sale deed), she said. In exceptional circumstances, this period may be extended up to a maximum of three months. No such GPA will be registered unless the collector of stamps has passed the order and the appropriate stamp duty has been paid, she said. Acting on the chief minister's directions, strict guidelines have been issued for the detailed scrutiny of property-related documents executed through GPA. All sub-registrars have been directed to ensure strict compliance with these instructions with immediate effect, the CMO said. Also Read - Delhi building collapse: Death toll climbs to three, FIR registered It has been observed that in several cases, documents are registered merely as a GPA by paying only a nominal stamp duty, even though they contain provisions relating to the sale of property, handing over possession and transfer of ownership rights. Chief Minister Gupta stated that this practice represents direct evasion of stamp duty and will not be tolerated under any circumstances. She said that every GPA document presented for registration in Delhi will now undergo detailed scrutiny by the sub-registrars. During the examination, particular attention will be paid to whether the document mentions any monetary consideration, provides for the handing over of possession of the property, is irrevocable in nature, or grants permanent authority to sell, gift, transfer, or mortgage the property, she said. Gupta warned that strict disciplinary action would be taken against sub-registrars who register GPAs involving monetary gains. Every sub-registrar's office will maintain a separate register for such cases and submit monthly reports. The chief minister has also directed the development of an online tracking mechanism within a month to monitor these cases, as stated by the CMO.
Published by HT Digital Content Services with permission from Millennium Post.